Data Table an be sold today for $200,000. It is being m would not involve any change in net working Calculating initial investment Vastine Medical, depreciated using MACRS and a 5-year recovery pe capital. Assume a 40% tax rate on ordinary income a. Calculate the book value of the existing computer b. Calculate the after-tax proceeds of its sale for $20 c. Calculate the initial investment associated with th (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) a. The remaining book value is $. (Round to the b. The after-tax proceeds will be $ (Round to th c. The initial investment will be $ . (Round to the Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year* Recovery year 3 years 5 years 7 years 33% 20% 14% 2 45% 32% 25% 3 15% 19% 18% 4 7% 12% 12% 5 12% 9% 6 5% 9% 7 9% 8 4% 9 10 10 years 10% 18% 14% 12% 9% 8% 7% 6% 6% 6% Enter your answer in each of the answer boxes. Print Done Calculating initial investment Vastine Medical, Inc., is considering replacing its existing computer system, which was purchased 2 years ago at a cost of $325,000. The system can be sold today for $200,000. It is being depreciated using MACRS and a 5-year recovery period (see the table 2). A new computer system will cost $500,000 to purchase and install. Replacement of the computer system would not involve any change in net working capital. Assume a 40% tax rate on ordinary income and capital gains. a. Calculate the book value of the existing computer system. b. Calculate the after-tax proceeds of its sale for $200,000. c. Calculate the initial investment associated with the replacement project a. The remaining book value is $. (Round to the nearest dollar.) b. The after-tax proceeds will be $ (Round to the nearest dollar.) c. The initial investment will be $ (Round to the nearest dollar.)